It's a Machine

Stop beating up the data

The Stock Market Is Scale-Invariant

Market data is part of a broader class of scale-invariant data (https://en.wikipedia.org/wiki/Scale_invariance). Look at the three charts below of the S&P500 Cash Index. Without explicitly labeling them, it is hard to tell which chart is daily, weekly, or monthly. This is because the stock market is scale-invariant.

Don’t confuse scale-invariance with self symmetry or fractals. Scale invariance occurs whenever a repetitive act is done on Mother Nature’s “dark energy” turntable (https://en.wikipedia.org/wiki/Dark_energy).

For example, if you repetitively throw grains of sand onto San Diego’s Coronado beach you will eventually outline the shape of the log-spiral turntable it floats on.

This is what occurs when a conch repetitively builds its shell. In a similar manner, traders outline Mother Nature’s log-spiral energy field by repetitively producing stock prices over time.

This is counter-intuitive. If the earth you stand on is round, wouldn’t you fall off? If the earth you stand on is spinning at 1,000 mph, producing the illusion that the Sun rises in the east and sets in the west, wouldn’t you feel a breeze? Likewise, if the earth you are standing on is log-spiraling around a Milky Way galaxy toward a center black hole, wouldn’t this leave its imprint on everything?

Yes, and it does. That imprint is seen as scale-invariance and that imprint is on everything in nature.

The Director of the U.S. Geological Survey, has stated, "We do know that earthquakes are not completely randomly distributed in space as well as time" (https://wbztv.com/national/us.earthquake.possibility.2.1528385.html). Perhaps the USGS should stop analyzing earthquake data per se, and look at the dark energy stream that the data floats on. A few minutes heads-up warning from the stream could save countless lives.

Traders should also take note and spend less time beating up the data. Stock prices are like leaves floating upon an invisible dark energy stream. Follow the stream and you will know where prices are heading.

The chart below measures the dark energy stream the S&P500 Cash Index (monthly close) is floating upon. The red line projects the stream 12 years into the future to July 2022. The red line represents the path that requires the least energy to project forward (https://en.wikipedia.org/wiki/Path_of_least_resistance).

S&P500 Cash Index – Monthly Close (Blue) and 12-Year Projection (Red)

The above chart reveals where the uptrend is apt to be broken; Martin Armstrong’s cycle lows & highs; the Elliott wave Grand Supercycle III top and IV bottom; T-Theory’s 18.6-year up from 1982 & 18.6-year down to 2019; the entire Kondratieff winter decline; and finally, when the “Roaring Twenties” will renew.

A Picture Tells A Thousand Words

Fifty years ago, weather forecasts were derived from prior temperature, humidity, and barometric pressure data analysis. Today, satellite imagery shows a storm front in real time.

What does that tell us? People want a picture of the future, not a rehash of past data.

Fortunately, the technology exists today to accurately display a picture of the future. If you go to www.24see.info during market hours you can watch a “dark energy” centerline superimposed onto an intraday S&P500 Cash Index chart – all in real time.

On the intraday chart, the centerline is projected forward 15-minutes into the future. Prices migrate toward the centerline stream, and easily overcome the 30-millisecond front-running enjoyed by high-frequency traders.

Our website shows how this information could be delivered freely over the internet, in exchange for advertising. Hopefully, someone at Yahoo!, MSN, AOL or Google will take note.

About the Author

George Crane

24see, Inc.